Correlation Between SILICON LABORATOR and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both SILICON LABORATOR and AEGEAN AIRLINES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SILICON LABORATOR and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SILICON LABORATOR and AEGEAN AIRLINES, you can compare the effects of market volatilities on SILICON LABORATOR and AEGEAN AIRLINES and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SILICON LABORATOR with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SILICON LABORATOR and AEGEAN AIRLINES.
Diversification Opportunities for SILICON LABORATOR and AEGEAN AIRLINES
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SILICON and AEGEAN is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SILICON LABORATOR and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and SILICON LABORATOR is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SILICON LABORATOR are associated (or correlated) with AEGEAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEGEAN AIRLINES has no effect on the direction of SILICON LABORATOR i.e., SILICON LABORATOR and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between SILICON LABORATOR and AEGEAN AIRLINES
Assuming the 90 days trading horizon SILICON LABORATOR is expected to generate 1.58 times more return on investment than AEGEAN AIRLINES. However, SILICON LABORATOR is 1.58 times more volatile than AEGEAN AIRLINES. It trades about 0.18 of its potential returns per unit of risk. AEGEAN AIRLINES is currently generating about 0.12 per unit of risk. If you would invest 11,600 in SILICON LABORATOR on October 11, 2024 and sell it today you would earn a total of 700.00 from holding SILICON LABORATOR or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SILICON LABORATOR vs. AEGEAN AIRLINES
Performance |
| Timeline |
| SILICON LABORATOR |
| AEGEAN AIRLINES |
SILICON LABORATOR and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SILICON LABORATOR and AEGEAN AIRLINES
The main advantage of trading using opposite SILICON LABORATOR and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SILICON LABORATOR position performs unexpectedly, AEGEAN AIRLINES can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AEGEAN AIRLINES will offset losses from the drop in AEGEAN AIRLINES's long position.| SILICON LABORATOR vs. AEGEAN AIRLINES | SILICON LABORATOR vs. G III Apparel Group | SILICON LABORATOR vs. Nok Airlines PCL | SILICON LABORATOR vs. ON SEMICONDUCTOR |
| AEGEAN AIRLINES vs. TERADATA | AEGEAN AIRLINES vs. Automatic Data Processing | AEGEAN AIRLINES vs. Q2M Managementberatung AG | AEGEAN AIRLINES vs. MICRONIC MYDATA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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